Das said this after a meeting of the central board of directors of the Reserve Bank.
Finance Minister Nirmala Sitharaman addressed this meeting.
Das said the Reserve Bank’s inflation forecast is “strong”, but is trending downwards. However, with this comes the risk of global crude oil prices.
He said that the Reserve Bank considers a certain range of volatility in crude oil prices before forming an opinion.
“Our inflation forecast is quite ‘confirmed’ and we are sticking to it,” the governor said. If something happens that you are not already aware of, you know. Crude oil prices are one of the factors leading to an upside risk of inflation.
He added that price stability is definitely on our mind. This means sticking to the inflation target. “The Reserve Bank is aware of its commitment to inflation as well as its growth objective.”
Das said that since October last year, the inflation trend has been on a downward trend. He said inflation is looking high, especially in the third quarter, mainly due to statistical reasons. The impact of this base effect will be visible during the next few months as well.
The Reserve Bank had said last week that headline inflation would go up in the fourth quarter of the current financial year 2021-22, but it would remain in a satisfactory range. After this, it will come down to the target in the second half of 2022-23.